Due to the failures of previous mortgage modification initiatives and continued defaults on modified loans, the govermnet is unveiling a new plan. The new plan targets two main types of homeowners; 1. those who owe more on their houses then they are worth and 2. those who are jobless and most need financial assistance.
For those who are “underwater” financially on their homes under the new plan, may refinance into loans backed by the Federal Housing Authority. In exchange the Federal Housing Authority would receive up to $14 billion in government bailout money. According to Moody’s analytics more than 15 million homeowners are underwater on their residences.
For unemployed borrowers, those receiving unemployment benefits would have their mortgage payments reduced to no more than 31% of their monthly income for 3 to 6 months. Once the borrower finds a job, then the mortgage payments may be modified or revert back to the contracted amount due and owing.
The success of the new plan depends on many factors, primarily the cooperation of private banks and lending institutions who are right now not in theposition to afford lesser payments.
If there are any general questions or topics you would like to read about relating to bankruptcy law in the Philadelphia, Pennsylvania region, you may contact the Philadelphia Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008 or (877) 4-LAW-411 or email brad@sadek-cooper-site. Thank you.